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The appetite for single-family housing in Reno continues to heat up in the summer as home values rose yet again but also placed home ownership out of reach for more locals.

The median price for an existing single-family house in Reno increased to $331,000 in June, according to the Reno/Sparks Association of Realtors. The June median price represents a 10 percent jump from the same period last year and beats the previous post-recession high set in May. It also continues a streak of home value increases for the greater Reno-Sparks metro area following the toughest recession in its history.

“We have seen year-over-year price gains for the past four years,” said William Process, RSAR president.

The surge in pricing is being fueled by strong demand as more buyers snap up market inventory. Reno and Sparks combined for 636 unit sales, the highest recorded for the month of June in the last five years.

The greater Reno-Sparks metro area also remained in seller’s market territory as supply fell to 3.3 months based on current sales activity, compared to 3.6 months in April and May. Houses are also staying on the market for a shorter time. On average, houses were on the market for 79 days before being bought, down from 84 days during the same period last year.

The increased demand and limited supply are starting to cut into future sales activity. Pending sales fell in June after five straight months of increases. New listings also fell to 798 from 854 in the previous month.

“With demand holding firm this spring and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale in June and ultimately brought down new signed contract activity,” Process said.

Affordability takes a hit

With the greater Reno-Sparks area firmly entrenched in a seller’s market, affordability continues to take a hit for new homebuyers. During the second quarter of 2012, for example, the median price for a home in Reno was $153,000, according to Housing Opportunity Index data. At the time, more than 86 percent of Reno-Sparks households could afford the median home on a median income of $71,400. By the first quarter of 2016, only 59 percent of area households are able to afford a median-priced home of $275,000. With Reno-Sparks’ median home price rising to $305,000 in the second quarter of this year, affordability becomes an even bigger issue.

Below are the full numbers for June and the second quarter from the RSAR. The data is limited to existing, stick-built single-family homes and does not include condominiums and townhouses. Note that year-over-year comparisons are more appropriate for unit sales due to seasonal activity.

June

WASHOE COUNTY (does not include Incline Village)

Median price: $311,663, up 11% year over year and 1% from previous month

Unit sales: 636, down 3% YOY and up 7% from previous month

RENO

Median price: $331,000, up 10% YOY and 1% from previous month

Unit sales: 430, down 3% YOY and up 8% from previous month

SPARKS

Median price: $276,000, up 10% YOY and down 4% from previous month

Unit sales: 206, down 4% YOY and up 6% from previous month

FERNLEY

Median price: $203,900, up 21% YOY and 13% from previous month

Unit sales: 50, up 11% YOY and 2% from previous month

Q2, 2016

WASHOE COUNTY (does not include Incline Village)

Median price: $305,000, up 9% YOY and 5% from previous quarter

Unit sales: 1,798, down 1% YOY and up 35 percent from previous quarter

RENO

Median price: $320,207, up 9% YOY and 5% from previous quarter

Unit sales: 1,205, down 1% YOY and up 43% from previous quarter

SPARKS

Median price: $282,500, up 10% YOY and 4% from previous quarter

Unit sales: 593, up 2% YOY and 20% from previous quarter

FERNLEY

Median price: $190,000, up 13% YOY and 12% from previous quarter

Unit sales: 143, unchanged YOY and up 28% from previous quarter

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